Real Estate Vocabulary Ch. 5-8

  1. allocation of markets
    an illegal division of territories to avoid competition
  2. antitrust laws
    law that prohibits price fixing and tie-in agreements
  3. caveat emptor
    the common law doctrine of let the buyer beware
  4. commission
    a form of compensation computed as a percentage of the total sales price of a property
  5. salesperson
    a person who is licensed only to perform real estate activities on behalf of a broker
  6. brokerage
    the business of bringing parties together
  7. independent contractor
    licensees who work under the terms of a written contract and receive more than 90% of their income from sales production rather than hours worked
  8. rules and regulations
    the device by which a state licensing authority defines and enforces the statutory law
  9. employee
    a salesperson whose activities are closely controlled, and who is entitled to benefits, unemployment compensation, and income tax withhollding
  10. ready, willing, and able buyer
    a person who is prepared to buy on the seller's terms
  11. real estate broker
    an individual who is licensed to buy, sell, exchange, or lease property for others, and to charge a fee for those services
  12. procuring cause
    the broker who starts an uninterrupted chain of events that results in the sale of a property
  13. group boycotting
    a conspiracy by 2 or more businesses against another
  14. real estate license laws
    statutes enacted by state legislatures to protect the public and ensure a standard of competence in the real estate industry
  15. sole proprietorship
    company held by a single owner
  16. buyer agency agreement
    an employment contract where the broker is employed as a purchaser's agent to find a suitable property
  17. broker protection clause
    a part of a listing agreement that stipulates that the property owner will pay the listing broker a commission if the broker was the procuring cause of a sale that is completed after the listing expired
  18. exclusive-agency listing
    a listing agreement with a single broker, under which the seller retains the right to sell the property independently without being obligated to pay a commission
  19. home warranty program
    an optional item in the listing contract that protects the buyer against the expense of certain types of repairs (such as plumbing, electrical, and heating systems) after the sale is completed
  20. exclusive-right-to-sell listing
    a listing agreement under which the seller must pay the broker a commission regardless of who sells the property
  21. listing agreement
    an employment contract for a broker's services for a property seller
  22. MLS
    a marketing organization whose broker members make their own exclusive listing available to other brokers
  23. net listing
    a listing agreement in which the seller receives a specific dollar amount from the sales price, and the selling broker retains the balance as compensation
  24. hold harmless wording
    an item in a listing agreement that states the broker and seller agree not to sue one another for any incorrect information supplied by one to the other
  25. open listing
    a listing agreement in which the seller may employ multiple brokers, retains the right to market the property independently, and is obligated to compensate only the broker who produces a buyer, if any
  26. condemnation
    the process by which the government exercises its right of eminent domain
  27. defeasible fee
    an estate qualified by some action or activity that must or must not be performed
  28. eminent domain
    the right of a government to acquire privately owned real estate for public use
  29. escheat
    the automatic transfer of real property to the state when the owner dies without heirs or a will
  30. estate in land
    the degree, quantity, nature, and extent of an owner's interest in real property
  31. fee simple absolute
    the highest interest in real estate recognized by law
  32. freehold estates
    a class of estates in land that lasts for an indeterminable period of time
  33. leasehold estates
    a class of estates in land for which the length of time can be determined
  34. police power
    a state's ability to enact legislation to preserve order, protect the public health and safety, and promote the general welfare
  35. taxation
    a charge imposed on real estate to raise funding for government services
  36. deed restriction
    a private agreement that affects the use of land
  37. prior appropriation
    the doctrine that the right to use any water, with the exception of limited domestic uses, is held and controlled by the state
  38. encroachment
    all or part of a structure that extends beyond the land of its owner or beyond legal building lines
  39. encumbrance
    any claim, charge, or liability that attaches to real estate
  40. homestead
    a legal life estate in which an individual's primary residence is protected, in whole or in part, against certain creditors
  41. easement
    the right to use another's land for a particular purpose
  42. life estate
    pur autre vie
    an estate based on the lifetime of a person other than the life tenant
  43. lien
    a charge against property that provides security for a debt or obligation of the property owner
  44. right of re-entry
    the owner's right to retake possession of property through legal action if a limiting condition is broken
  45. remainderman
    the person to whom property passes when a life estate ends
  46. tenancy in common
    a form of property ownership in which owners hold undivided fractional interests that are inheritable by their heirs
  47. joint tenancy
    the governing body of a cooperative
  48. partition
    a legal method for dissolving a co-ownership
  49. partnership
    an association of 2 or more persons who carry on a business for profit as co-owners
  50. proprietary lease
    the evidence of the right to occupy a unit in a cooperative
  51. severalty
    the ownership of real estate by one individual
  52. tenancy by the entirety
    a special form of co-ownership for married couples
  53. board of directors
    the governing body of a cooperative
  54. trust
    a device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a third party
  55. testamentary trust
    a form of trust established by will after the owner's death
  56. assessments
    special payments required for condominium unit owners to address specific expenses
  57. condo fee
    recurring fees required of condominium units owners to cover basic maintenance and operations
  58. corporation
    a business organization that is a legal entity managed and operated by a board of directors
  59. general partnership
    a business organization in which all members participate in the operation and management of the business and share full liability for business losses and obligations
  60. right of survivorship
    on the death of a joint tenant, the deceased's interest tranfers directly to the remaining joint tenants
  61. limited liability company
    a business organization that combines the tax advantages of limited partnerships and the limited liability of corporations
  62. separate property
    in a community property state, real or personal property that was owned solely by either spouse prior to marriage, or acquired by inheritance or gift during the marriage
  63. time-share property
    a fee interest in a property that entitles the owner to use the facility for a certain period of time
  64. time-share use
    a contract right under which a developer retains ownership of property and the purchaser receives the right to occupy and use the facilities for a certain period
Card Set
Real Estate Vocabulary Ch. 5-8